thyssenkrupp Steel places an order with SMS group, Düsseldorf, for the engineering, delivery and construction of the first hydrogen-powered direct reduction plant at the Duisburg location.
This marks the start of one of the biggest industrial decarbonization projects worldwide, which at one stroke will avoid more than 3.5 million metric tons of CO2 per year in the future. The order volume for SMS amounts to over 1.8 billion euros, and also marks the largest single order in the history of the company.
Moreover, significant additional structural building services will be required in addition to infrastructure and media connections. The preliminary tasks can be started immediately, under the scope for an earlier start to work that has been approved.
The plant will have a capacity of 2.5 million metric tons of directly reduced iron (DRI), and is scheduled for completion by the end of 2026. The overall project remains subject to European Union approval under state aid provisions, as well as the final funding decision. Both are expected in the coming months. The state of North Rhine-Westphalia and the German government have already signalled substantial financial support for the project.
In the pursuit of the best technological solution, thyssenkrupp will be the first steelmaker in the world to combine a 100 percent hydrogen-capable direct reduction plant with innovative smelters.
Within the framework of the early start of measures granted by the Federal Government, the detailed planning and the preparatory work for the construction of the direct reduction system will begin immediately. The upcoming measures include, for example, the preparation of the construction site on the thyssenkrupp Steel factory premises.
During the project, thyssenkrupp Steel will enter into an open and transparent dialogue with neighbours, politicians and civil society in order to present the pioneering project to decarbonize steel production at the Duisburg site.